In the acquisition deal, Zenith Bank Plc, a leading Nigerian lender, is in advanced talks to acquire Paramount Bank Ltd in Kenya.
Zenith would join other Nigerian banks that have expanded in Kenya, such as Access Bank, which acquired the National Bank of Kenya from the KCB Group in April 2025.
This comes at a time when Kenya’s banking sector is facing major regulatory-driven changes, as Kenyan banks adjust to new Central Bank of Kenya (CBK) capital requirements that are driving sector consolidation.
According to reports, executives from the acquiring bank recently traveled to Nairobi to meet with shareholders. As reported by Business Daily, the transaction is expected to close within months, pending approvals from both the Central Bank of Nigeria and the Central Bank of Kenya.
Central Bank of Kenya’s Pressure on Small Lenders
The Central Bank of Kenya has increased the minimum core capital requirement from KSh 1 billion (~$7.7 million) to KSh 3 billion (~$24 million) by December 2025, and further to KSh 10 billion (~$77 million) by 2029.
Smaller banks are now being forced to recapitalise, merge, or sell to comply with these thresholds.
For the Nigerian bank, the strategic entry allows it to acquire an existing institution rather than starting operations from scratch.
This follows its successful KSh 34.2 billion rights issue in early 2025, which has given it the capacity for regional expansion.
About Paramount Bank Ltd, Kenya
Paramount Bank Ltd began in 1993 as Combined Finance Ltd, a non-bank financial institution.
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It obtained a commercial banking license in 1995 and became Paramount Bank Ltd.
In 2000, it merged with Universal Bank Ltd to form Paramount Universal Bank, and in 2005, it reverted to its original name, Paramount Bank Ltd.
The bank joined the SWIFT network in 2003, allowing international money transfers.
Licensed by the Central Bank of Kenya, Paramount Bank is classified as a “small” commercial bank according to CBK’s 2024 report.
The bank operates eight branches across Kenya, including locations in Westlands (Sound Plaza), Nairobi Industrial Area, and Kisumu.
Nigerian Zenith Bank Plc
Zenith Bank was founded by Jim Ovia in May 1990 and started operations in July of the same year.
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It became a public limited company in 2004 and was listed on the Nigerian Stock Exchange on October 21, 2004.
In 2013, the bank also listed on the London Stock Exchange through a Global Depositary Receipt (GDR).
Headquartered in Lagos, Nigeria, on Ajose Adeogun Street, Victoria Island, Zenith Bank has a strong domestic presence with over 500 branches and business offices across the country.
Internationally, it operates subsidiaries in Ghana, Sierra Leone, and Gambia, with representative offices in the United Arab Emirates and China, and established Zenith Bank Paris in France in 2024.
The bank is publicly traded on both the Nigerian and London Stock Exchanges.
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